Correlation Between HeNan Splendor and Shanghai Phichem
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By analyzing existing cross correlation between HeNan Splendor Science and Shanghai Phichem Material, you can compare the effects of market volatilities on HeNan Splendor and Shanghai Phichem and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HeNan Splendor with a short position of Shanghai Phichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Shanghai Phichem.
Diversification Opportunities for HeNan Splendor and Shanghai Phichem
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HeNan and Shanghai is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Shanghai Phichem Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Phichem Material and HeNan Splendor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HeNan Splendor Science are associated (or correlated) with Shanghai Phichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Phichem Material has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Shanghai Phichem go up and down completely randomly.
Pair Corralation between HeNan Splendor and Shanghai Phichem
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.86 times more return on investment than Shanghai Phichem. However, HeNan Splendor is 1.86 times more volatile than Shanghai Phichem Material. It trades about 0.31 of its potential returns per unit of risk. Shanghai Phichem Material is currently generating about 0.27 per unit of risk. If you would invest 888.00 in HeNan Splendor Science on November 4, 2024 and sell it today you would earn a total of 160.00 from holding HeNan Splendor Science or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Shanghai Phichem Material
Performance |
| Timeline |
| HeNan Splendor Science |
| Shanghai Phichem Material |
HeNan Splendor and Shanghai Phichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Shanghai Phichem
The main advantage of trading using opposite HeNan Splendor and Shanghai Phichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Shanghai Phichem can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shanghai Phichem will offset losses from the drop in Shanghai Phichem's long position.| HeNan Splendor vs. HanS Laser Tech | HeNan Splendor vs. Kailong High Technology | HeNan Splendor vs. Yan Tai Shuang | HeNan Splendor vs. Jinhe Biotechnology Co |
| Shanghai Phichem vs. Tonghua Grape Wine | Shanghai Phichem vs. Eastroc Beverage Group | Shanghai Phichem vs. Jiangsu Xinri E Vehicle | Shanghai Phichem vs. Guangzhou Automobile Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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